A New Year’s resolution to be serious about buying, or selling a home, makes sense, writes Alistair Hilton, Head of sales and partner at Balfours.
The expectation for 2024 is that mortgage rates could begin their journey downward, house prices have slipped as was the Bank of England’s intention. All this results in suggesting 2024 is likely to be a good time to buy,
After the highest interest rates in 15 years at 6.86% in July 2023 for a two-year fixed mortgage. The Bank of England is anticipating they have now done their job cooling the economy and little by little should nudge down. The evidence, courtesy of data providers, Moneyfacts finds the same terms in early December was down to 6 percent.
The downward trajectory of interest rates is further enhanced by competition between mortgage lenders keen to compete for market share at a leaner time.
What the market doesn’t want is anything dramatic and that to the credit of the Bank of England is what is currently reflected. There has been a modest drop in house prices, less than five per cent and still £40,000 higher than pre pandemic levels, according to Zoopla research.
The biggest fall in all this is the number of transactions, down by nearly a quarter, 23 percent to be precise. Now consider the number of homes on the market, a whopping 40 percent more than this time last year. This is good news for buyers who really do have a great choice together with realistic deals to be had.
The final piece in the jigsaw must be the prospect of a general election, especially where a change of leadership is a serious possibility. So, if buying, or selling is seriously on the agenda I would propose a New Year’s resolution to crack on before that political conundrum anchors your aspirations.